CUTTER & BUCK REPORTS 37% NET SALES GROWTH IN THIRD QUARTER TO $31.8 MILLION; PROFITS INCREASE 41% TO $.13 PER DILUTED SHARE.Business Editors SEATTLE--(BUSINESS WIRE)--March 15, 2000 Cutter cutter, small, one-masted sailing vessel, with a rig similar to that of a sloop except that it usually has a sliding bowsprit and a topmast. From 1800 to 1830 cutters were in service between England and France. & Buck Buck after murder of his master, leads wolf pack. [Am. Lit.: The Call of the Wild] See : Dogs Buck clever and temerarious dog perseveres in the Klondike. [Am. Lit.: Call of the Wild] See : Resourcefulness Inc. (Nasdaq:CBUK) today reported net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight increased 37% to $31.8 million for the third quarter ended January January: see month. 31, 2000, compared to $23.1 million in the like quarter a year ago. Net income increased 41% to $1.4 million, or $.13 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, compared to $1.0 million, or $.11 per diluted share for the like quarter last year. The improvement in net income per share was achieved despite a 24% increase (1,955,000 shares) in the number of shares outstanding from the company's follow-on fol·low-on adj. Following as a related or consequent aspect or development: "Such contracts involve follow-on sales of maintenance services" Christian Science Monitor. stock offering last summer. Cutter & Buck's net sales increased 46% to $97.9 million for the nine months ended January 31, 2000, compared to $66.9 million in the like period a year ago. Net income for the first nine months of FY2000 increased 41% to $4.8 million compared to $3.4 million for the same period last year. "We believe our growth demonstrates that Cutter & Buck is one of the most exciting stories in the apparel sector," said Harvey Harvey, city (1990 pop. 29,771), Cook co., NE Ill., a suburb S of Chicago; inc. 1895. Its manufactures include steel castings, metal products, chemicals, machinery, and electronic equipment. Harvey has an oil research center. The city was founded by Turlington W. N. Jones, chief executive officer. "We achieved strong sales growth across all channels of distribution, including golf, corporate and specialty retail. Our multi-channel See multichannel. branding strategy is proving that hard work and investment in each area of our business benefits the whole," added Jones. "Our growing market share in all our divisions is reinforcing brand preference with existing Cutter & Buck wearers and creating rapid awareness with new consumers evidenced by the dynamic growth in our men's and women's specialty retail channel." At the PGA (1) (Professional Graphics Adapter) An early IBM PC display standard for 3D processing with 640x480x256 resolution. It was not widely used. (2) (Programmable Gate Array) See gate array and FPGA. Tradeshow held in Orlando Orlando, city, United States Orlando (ôrlăn`dō), city (1990 pop. 164,693), seat of Orange co., central Fla., in a lake region; inc. 1875. In a citrus fruit and farm area, it is one of the world's most visited vacation spots. , appointments with show attendees increased 25% over last year's levels as Cutter & Buck debuted its new 3,500 square foot merchandise booth. The company also appeared at MAGIC, the leading men's apparel tradeshow. "The recent MAGIC Show in Las Vegas Las Vegas (läs vā`gəs), city (1990 pop. 258,295), seat of Clark co., S Nev.; inc. 1911. It is the largest city in Nevada and the center of one of the fastest-growing urban areas in the United States. was a very successful event. The enthusiastic reception to our Fall 2000 collection validates our belief that our fashion collection is as powerful as our golf collection," stated Jones. "We recently announced the signing of two leases for new retail stores at Pioneer Place in Portland Portland, town, England Portland, town (1991 pop. 12,945), Dorset, S England. It is on the Isle of Portland, a small rocky peninsula. Portland stone has been used in St. Paul's Cathedral and other important London buildings. Lobsters and crabs are harvested. , Oregon Oregon, city, United States Oregon, city (1990 pop. 18,334), Lucas co., NW Ohio, a suburb adjacent to Toledo, on Lake Erie; inc. 1958. It is a port with railroad-owned and -operated docks. The city has industries producing oil, chemicals, and metal products. and Phipps Plaza Phipps Plaza, owned by Simon Property Group, is an 821,000 square foot (76,000 m²) mall in Buckhead, Atlanta and Lenox Square's sister-mall. About In 1969, Phipps Plaza opened as the first multi-level mall in Atlanta and was aimed to become the South's leading upscale and in Atlanta Atlanta (ətlăn`tə, ăt–), city (1990 pop. 394,017), state capital and seat of Fulton co., NW Ga., on the Chattahoochee R. and Peachtree Creek, near the Appalachian foothills; inc. 1847. , Georgia Georgia, country, Asia Georgia (jôr`jə), Georgian Sakartvelo, Rus. Gruziya, officially Republic of Georgia, republic (2005 est. pop. 4,677,000), c.26,900 sq mi (69,700 sq km), in W Transcaucasia. . Both stores are located in upscale shopping destinations within their communities and are surrounded sur·round tr.v. sur·round·ed, sur·round·ing, sur·rounds 1. To extend on all sides of simultaneously; encircle. 2. To enclose or confine on all sides so as to bar escape or outside communication. n. by some of the best specialty retailers in the country. We are excited about both openings; Portland because of its proximity to our hometown home·town n. The town or city of one's birth, rearing, or main residence. Noun 1. hometown - the town (or city) where you grew up or where you have your principal residence; "he never went back to his hometown again" of Seattle and loyal consumer base, and Atlanta because the Southeast has historically been one of our strongest regions in brand recognition," continued Jones. "With four stores open and three more announced, we feel confident that our strategy to establish Cutter & Buck concept stores around the country will enhance our wholesale businesses and rapidly build our brand loyalty with upscale consumers." For the third quarter ended January 31, 2000, operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. increased 39.3% to $2.1 million compared to $1.5 million in the same period a year ago. Operating income as a percentage of sales also improved to 6.6% from 6.5 % for the like period. "These results reflect the costs of planned initiatives associated with the move to our new distribution center and the expansion of the number of company owned retail stores," stated Martin J. Marks, president and chief operating officer Chief Operating Officer (COO) The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. . "We are particularly pleased that we were able to undertake these initiatives while improving our operating income. This accomplishment reflected the combined effect of the continued strength of our gross margins and solid management of our operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. . Gross margins increased to 44.8% in the third quarter compared to 42.7 % in the same quarter a year ago. Our gross margins now have exceeded the 40% levels for more than three consecutive years." "In December, we completed the relocation RELOCATION, Scotch law, contracts. To let again to renew a lease, is called a relocation. 2. When a tenant holds over after the expiration of his lease, with the consent of his landlord, this will amount to a relocation. of our warehouse and embroidery embroidery, ornamental needlework applied to all varieties of fabrics and worked with many sorts of thread—linen, cotton, wool, silk, gold, and even hair. Decorative objects, such as shells, feathers, beads, and jewels, are often sewn to the embroidered piece. operations to our new distribution center. We are planning a carefully phased warehouse management system implementation, with phase one to be completed by April 30, 2000. Phase one is intended to enhance our inventory management capabilities and improve efficiency during our year-end physical inventory. The implementation of the balance of the new system will address functionality during the first six months of fiscal year 2001," continued Marks. "Our inventory strategy for fiscal year 2000 included a planned increase to meet the demands of our growing at-once corporate business and golf reorder re·or·der v. re·or·dered, re·or·der·ing, re·or·ders v.tr. 1. To order (the same goods) again. 2. To straighten out or put in order again. 3. To rearrange. v. business, in concert with Y2K See Y2K problem and Y2K compliant. Y2K - Year 2000 planning to expedite ex·pe·dite tr.v. ex·pe·dit·ed, ex·pe·dit·ing, ex·pe·dites 1. To speed up the progress of; accelerate. 2. the receipt of spring inventory prior to December 31, 1999. This plan projected a higher rate of inventory growth relative to sales during the first two quarters of fiscal year 2000. The year to date 52% increase in inventory is tracking in line with our stated goal of achieving a balanced growth of inventories to sales for the current fiscal year. We anticipate meeting our plan to achieve a rate of inventory growth consistent with our sales growth by fiscal year end April 30, 2000," concluded Marks. "We are very proud of our continued growth and believe that we are making significant strides toward achieving our long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. goal of establishing Cutter & Buck as a premiere sportswear brand," concluded Jones. Statements made in this news release that are not historical facts are forward-looking information. Actual results may differ materially from those projected in any forward-looking information. Specifically, there are a number of important factors that could cause actual results to differ materially from those anticipated by any forward-looking information. Those factors include, but are not limited to, style changes and product acceptance, relations with suppliers and independent sales representatives, the ability of the Company to control costs and expenses, the ability of the Company to carry out successful design and planned product and brand messaging/extension activities and to penetrate its chosen distribution channels, competition, foreign currency risks, risks associated with opening and operating retail locations, the ability of the Company to timely implement the new warehouse management system, technological change, political and trade relations and general economic conditions. Additional information on these and other factors, which could affect the Company's financial results, are included in its Securities and Exchange Commission filings. Finally, there may be other factors not mentioned above or included in the Company's SEC filings that may cause actual results to differ materially from any forward-looking information. Cutter & Buck designs and markets upscale sportswear and outerwear under the Cutter & Buck brand. The Company sells its products primarily through golf pro shops and resorts, corporate sales accounts and better specialty stores Noun 1. specialty store - a store that sells only one kind of merchandise shop, store - a mercantile establishment for the retail sale of goods or services; "he bought it at a shop on Cape Cod" . Cutter & Buck products feature distinctive, comfortable designs, high quality materials and manufacturing and rich detailing.
SUMMARY OF SPRING BOOKINGS (in thousands)
Spring 2000 Spring 1999 Percentage Difference
FY 2000 FY 1999 Change
(as of 3/13/00) (as of 3/11/99)
GOLF $ 31,530 $ 27,371 15.2% $4,159
SPECIALTY STORE 8,999 5,775 55.8% 3,224
CORPORATE ACCOUNTS 19,480 11,346 71.7% 8,134
OTHER 3,874 2,085 85.8% 1,789
TOTAL DOMESTIC
SPRING BOOKINGS 63,883 46,577 37.2% 17,306
TOTAL INTERNATIONAL
SPRING BOOKINGS 6,469 4,707 37.4% 1,762
TOTAL SPRING
BOOKINGS $ 70,352 $ 51,284 37.2% $19,068
SUMMARY OF SALES INVOICED - THIRD QUARTER (in thousands)
FY 2000 FY 1999 Percentage Difference
Change
GOLF $ 12,399 $ 9,645 28.6% $2,754
SPECIALTY STORE 4,017 2,802 43.4% 1,215
CORPORATE
ACCOUNTS 11,078 7,520 47.3% 3,558
OTHER 2,140 1,931 10.8% 209
TOTAL DOMESTIC
SALES 29,634 21,898 35.3% 7,736
TOTAL INTERNATIONAL
SALES 2,152 1,250 72.2% 902
TOTAL SALES $ 31,786 $ 23,148 37.3% $8,638
SUMMARY OF SALES INVOICED - YEAR TO DATE (in thousands)
FY 2000 FY 1999 Percentage Difference
Change
GOLF $ 39,324 $ 30,253 30.0% $9,071
SPECIALTY STORE 11,361 7,879 44.2% 3,482
CORPORATE
ACCOUNTS 34,282 21,063 62.8% 13,219
OTHER 6,470 3,360 92.6% 3,110
TOTAL DOMESTIC
SALES 91,437 62,555 46.2% 28,882
TOTAL INTERNATIONAL
SALES 6,428 4,350 47.8% 2,078
TOTAL SALES $ 97,865 $ 66,905 46.3% $30,960
FINANCIAL HIGHLIGHTS
(unaudited) ($ in thousands, except per share data) )
Consolidated Statements of Income
Three months ended Jan 31, Nine months ended Jan 31,
2000 1999 2000 1999
Net Sales $31,786 $23,148 $97,865 $66,905
Total Cost of
Goods Sold 17,540 13,256 54,697 38,461
Gross Profit 14,246 9,892 43,168 28,444
Total Operating
Expenses 12,140 8,380 35,418 23,225
Income From
Operations 2,106 1,512 7,750 5,219
Total Other
Income
(Expenses) 30 7 (194) 136
Net Income Before
Provision For
Income Taxes 2,136 1,519 7,556 5,355
Provision For
Income Taxes 769 550 2,720 1,928
Net Income
After Taxes $ 1,367 $ 969 $ 4,836 $3,427
Basic net income
per share $ 0.13 $ 0.12 $ 0.50 $ 0.42
Diluted net income
per share $ 0.13 $ 0.11 $ 0.49 $ 0.40
Shares used in computation of:
Basic net income
per share 10,329 8,289 9,670 8,183
Diluted net
income per
share 10,484 8,630 9,880 8,545
Consolidated Balance Sheets
Jan. 31, 2000 April 30, 1999 Jan. 31, 1999
(audited)
Current Assets:
Cash $14,416 $ 4,760 $ 3,948
Accounts
Receivable 28,884 32,519 18,213
Inventories 43,483 28,621 27,662
Other Current
Assets 4,801 4,785 4,139
Total Current
Assets 91,584 70,685 53,962
Fixed Assets, net of
accumulated
depreciation 15,018 9,478 7,694
Other Assets 540 425 316
Total Assets $107,142 $80,588 $61,972
Liabilities & Stockholders' Equity
Current Liabilities:
Short-term
Borrowings $ 3,812 $12,085 $ 1,821
Accounts Payable 7,996 6,807 7,333
Accrued Liabilities 5,948 6,661 2,722
Current Portion of
Long-term Debt 1,002 220 223
Total Current
Liabilities 14,946 25,773 12,099
Total Long
Term Debt 5,263 5,907 5,985
Total Stockholders'
Equity 83,121 48,908 43,888
Total Liabilities
& Stockholders'
Equity $103,330 $80,588 $61,972
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